NIFTY based on some Indicators

Since i predicted that markets will move down (i predicted that on basis f what i have learned so far)..it moved donw only on Monday..that too slightly..but since tuesday a strong up move is observed....

                       Base Chart Source: www.icharts.in

Above is the NIFTY daily chart. I will introduce to you two indictors based on above charts. First is Bolinger Bands ( The blue thick area in the tiop Chart) and RSI (Relative Strength Indicator). I will post details of these two indicators later...(or you may go to the links i have posted in my earlier posts).

I will just explain here ....how to interpret market on the basis of the two indicators.

Bolinger Bands: In bolinger bands...when the chart touches the boundary of bolinger band then the markets will move in opposite direction...i.e. if in an uptrend chart touches boundary of bolinger band then the markets may fall...and for downternd its the opposite.....we cannot trade in any markets soleley on basis of Bolinger bands, we need some other indictors to confirm it
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RSI: RSI is the chart which is shown above within the green Box. RSI shows the overbought or oversold position. If the line is above 70 mark its overbought condition and if its below 30 mark then its oversold condition. If markets are overbought then they are bound to move in other direction i.e. downwards, If markets are in oversold condition they will move upwords.

From the above chart we can see that market chart as touched the bolinger band (red circle) and RSI shows that markets are in ovebought condition (blue circle).....These two indicators indicates that market from here should move downwards....

But u never know abt markets so wait and watch...over next 2 days.....as per my learning so far ( i mean der is lot more left to be learned) ..NIFTY shoud move downwards....

NOTE: Markets are rising on the news of good US data. Ben Bernanke's statement that " US recession is likely over" has created a positive sentiments in mind of investors and they went on buying spree on Wednesday..which was clearly reflected in the fact that all the markets across world rose and closed at very high levels. All aisan markets have reached at very high level...Looking a the positive sentiments there are all chances that markets will rise today as well...so lets see...